A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selected for improving the...

A chemical engineer working for a large chemical

products company was asked to make a recommendation

about which of three mutually exclusive

revenue alternatives should be selected for improving

the marketability of personal care products

used for conditioning hair, cleansing skin, removing

wrinkles, etc. The alternatives (X, Y, and Z)

were ranked in order of increasing initial investment and then compared by incremental rate of return

analysis. The rate of return on each increment of

investment was less than the company’s MARR of

17% per year. The alternative to select is:

(a) DN

(b) Alternative X

(c) Alternative Y

(d) Alternative Z